Nasdaq
華爾街日報3 Volatile Stocks with Questionable Fundamentals
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Revolve (RVLV)
Rolling One-Year Beta: 1.77
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Why Do We Pass on RVLV?
- Competition may be pulling attention away from its platform as its 5.7% average growth in active customers was choppy
- Underwhelming performance in both user spending and platform engagement suggests its platform is becoming less effective
- Earnings per share have dipped by 10.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Revolve’s stock price of $31.41 implies a valuation ratio of 21.2x forward EV/EBITDA. Read our free research report to see why you should think twice about including RVLV in your portfolio.
Hub Group (HUBG)
Rolling One-Year Beta: 1.13
Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Why Are We Out on HUBG?
- Disappointing unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 28% annually, worse than its revenue
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $43.73 per share, Hub Group trades at 22.3x forward P/E. To fully understand why you should be careful with HUBG, check out our full research report (it’s free for active Edge members).
Stanley Black & Decker (SWK)
Rolling One-Year Beta: 1.53
With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.
Why Do We Steer Clear of SWK?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 9.6% annually while its revenue grew
- 5.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Stanley Black & Decker is trading at $75.01 per share, or 14.8x forward P/E. Check out our free in-depth research report to learn more about why SWK doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.